Already taxed society
In Guyana, like in many other countries in the world, financing of the Government is important. However, for a Third World developing country, the 2017 Budget has left many economists shocked with the high levels of taxation, more importantly Value Added Tax (VAT) on electricity and water. But, as if the increased tax measures in the 2017 Budget are not enough burden on Guyanese, Government has now announced that the Demerara Harbour Bridge tolls will be increased from next year.
Disappointingly, the nation was informed only after a Member of Parliament in the Committee of Supply, during the consideration of the 2017 Estimates for the Public Infrastructure Ministry, enquired about the reduction of the subsidy for the Bridge from $150 million in 2016 to $2 million for 2017. This, therefore, means that except four-wheel-drive jeeps and minibuses, for which the current toll is $200 as well as vehicles with double-axle trailers that pay $300 to cross the Bridge, all other vehicles will be subjected to this imposed increase. This revelation comes mere days after Government announced that it had gone ahead and signed a contract for a feasibility study with Dutch company Lievense CSO for a new Demerara bridge. This study will commence in January 2017.
The imposed astronomical crossing tolls; however, were approved since June of this year by Cabinet, but when the media had reported on the increases, Minister within the Public Infrastructure Ministry, Annette Ferguson came out and told the media that a decision had not yet been made to increase the tolls rather it was up for discussions. Less than six months later the same Minister is now saying that a decision was made and reflected in the 2017 budgetary measures. However, this move will see increases of more than 100 per cent for some vehicles. The increases as announced are: motorcycles – from $20 to $40; motor cars – from $100 to $200; motor cars (hire) – from $100 to $200; motor tractors – from $200 to $300; one-axle trailers – from $200 to $300; hearses – from $100 to $300; motor lorry 1 – from $500 to $700; motor lorry 3 – $600 to $700; goods vehicles (up to 2200) pounds) – from $100 to $400, and goods vehicles (up to 4400 pounds) – from $200 to $400.
Basic economics have taught us that taxes have both macro and micro effects on an economy, but for a developing country like ours, increased taxes added to additional upsurges on services will see the ability of taxpayers affected adversely. One is left to wonder how much thought was actually put into the decision of hiking these tolls as this will now add additional burdens on Guyanese who already have to deal with over 150 additional measures as announced during the Budget presentation.
The Opposition can be considered as justified when it kicked up a storm about these increases, which it described as another “broadside” from Government. Again the Opposition was right when it highlighted that this increase will no doubt multiply the hardships which the Guyanese populace will have to endure in 2017 and beyond. These measures – both additional taxes and other almost lethal increases – are a vigorous indication that indeed the budget was crafted to maintain and enhance revenue stream, which will see Guyanese being extremely taxed. All of this is coming against the backdrop that Guyana suffered a restrained decline in exports of –4 per cent in 2015, according to a recently-released Inter-American Development Bank report.
While it has already been announced by Government that Budget 2017 will not be withdrawn, the obligatory measures, including the increase in the DHB tolls, should be reviewed. This review should be done in the interest of Guyanese, as the noteworthy offensive measures that were included as proposals will only add to the burdens of an already straitened society.
